PRSWSSP Contract APS-01 – Comprehensive Study Notes

Contract Overview

• Type: Non-Judicial, Works Contract executed on $19\,\text{Jan}\,2024$ (e-Stamp issued $24\,\text{Nov}\,2023$ )
• Contract Package: APS-01 (Pilot Phase – Cluster Central-I)
• Project: Punjab Rural Sustainable Water Supply & Sanitation Project (PRSWSSP)
• Implementing Agency (Employer): Punjab Rural Municipal Services Company (PRMSC)
• Financing: World Bank – Loan $\text{IBRD-92670}$ (Project ID $P169071$ )
• Accepted Contract Amount: $\text{PKR}\;374\,092\,559$ (≈ Rs 374 million)
• Contract Price excludes provisional sums & is subject to price escalation (GCC 45)
• Works Location: Tehsil Ahmedpur Sial, District Jhang – villages Jaiwan, Chak No 2/21, Gudara, Doluana Sharqi, Fatehpur Pirti & Sialkot

Parties

• Employer: PRMSC (5th Fl., KD Plaza, MM Alam Rd, Gulberg-III, Lahore)
• Contractor: M/s Alam Khan Brother Engineers & Construction (Pvt) Ltd (AKB)
• Witnesses: Ch. Jamil Ahmad (Employer), Adil Nayeer (Contractor)
• Performance Security: $5\%$ of Accepted Contract Amount (plus extra if bid is Abnormally Low)

Principal Documents (Contract → descending order of priority)

Contract Agreement
Letter of Acceptance (LOA) – dated $06\,\text{Nov}\,2023$
Contractor’s Bid (17 Jul 2023) & Bid-Securing Declaration
Addenda (Nil for this contract)
Particular Conditions of Contract (PCC)
General Conditions of Contract (GCC, WB edition)
Specifications
Drawings
Bill of Quantities (BoQ)
Any further document listed in PCC §2.3(i) – e.g.
• ESHS Management Strategies & Implementation Plans (C-ESMP)
• Code of Conduct for workers

Scope of Work

• Procurement & construction of Civil Works – Central-I cluster:
– Water Supply System (ejector pumps, tube-wells, O/H tanks, distribution)
– Sewerage system (septic tanks, soakage pits, anaerobic baffled reactor, pump station, force mains)
– Solid-waste enclosures (13 Nos)
– Ancillary electrification, boundary walls, geotechnical investigations, ESMP implementation & employer’s facilities
• Total BoQ value ≈ $\text{PKR}\;352.05\,\text{million}$ (water) + $260.28\,\text{million}$ (sewer) + $8.15\,\text{million}$ (solid waste) + $3.53\,\text{million}$ (ESMP) + $2.25\,\text{million}$ (engineer facilities) = $627.\text{million}$ (excl. PRA 5 %)

Key Time Parameters

• Intended Completion Date (whole Works): $300$ days from Start Date
• Start Date: as per commencement letter by Project Manager (NESPAK EDCS)
• Defects Liability Period: $365$ days after Completion Certificate
• Liquidated Damages: $0.10\%$ of final Contract Price per day; max $10\%$
• Bonus for early completion: PCC 48 ( unspecified rate – consult schedule)

Payments & Securities

• Advance Payment: $15\%$ of Accepted Contract Amount; recoverable in equal monthly instalments, last two months before completion
• Retention: $10\%$ of each IPC, ceiling $5\%$ of Contract Price; half released on Completion Certificate, remaining on DLP expiry
• Price Adjustment formula (PCC 45):
$Pn = A + B \;\frac{In}{I0} + C \;\frac{Ln}{L_0} + \dots$
– Base indices taken 28 days before Bid opening; materials table (cement, steel, diesel, labour, HDPE, etc.) with coefficients summing 1.00 (Schedule of Adjustment Data)
• Currency: Pak Rupees; foreign currencies not envisaged

Risk Allocation & Insurance

• Employer’s Risks – GCC 11 (injury/loss due to Employer design, war, radioactivity, etc.)
• Contractor’s Risks – all others (GCC 12)
• Mandatory Insurances (PCC 13):
– Works + Plant + Materials: replacement cost $+15\%$ (deductible ≤10 %)
– Equipment, third-party property, personnel injury (statutory limits)

Programme & Time Control

• Initial work programme due $14$ days after LOA
• Updates every $14$ days; non-submission penalty: $\text{PKR}\;500{,}000$ withheld
• Early Warning & Management Meetings per GCC 31 & 30

Quality Control & Testing

• Project Manager may instruct additional tests; failed work → cost on Contractor
• Defects Notification & correction mechanism; uncorrected defect cost assessed by PM (GCC 35)

Variations, Compensation Events & Claims

• Variations initiated by PM; Contractor quotes within 7 days or PM assesses
• Compensation Events list – GCC 42 (access delays, unforeseen ground, Employer changes, etc.)
• Dispute path: PM decision → Adjudicator (Chairman PEC) → Arbitration (Pakistan Arbitration Act 1940, Lahore seat)

Termination

• Fundamental breaches (GCC 57): prolonged suspension, bankruptcy, non-payment >84 days, max LD reached, Fraud & Corruption, failure to maintain securities
• Employer pays for work done + reasonable demobilisation if terminates for convenience

Environmental, Social, Health & Safety (ESHS)

• Contractor must submit and update C-ESMP; no work permitted until approved
• Code of Conduct mandatory; breaches → personnel removal (PCC 9.2)
• Monthly ESHS metrics report (Appendix B) including incidents, training, grievances, audits
• Key PPE & ESMP budget items (BoQ 4):
– Medical screening, tarpaulins, hazardous‐waste handling, fire extinguishers, PPE (helmets, shoes, goggles, masks), air & water quality monitoring; total ESMP budget $\text{PKR}\;3.525\,\text{million}$

Fraud & Corruption (WBG Guidelines)

• Definitions – corrupt, fraudulent, collusive, coercive, obstructive practices
• Sanctions: bid rejection, contract termination, debarment; audit & inspection rights retained by World Bank

Particular Technical Highlights

• Water Supply
– 12 ejector pumps (2.5 HP, 38 m head)
– Tube-wells: 8" FRP casing, 0.25 cfs submersible pumps (15 HP), development & testing 48 h @150 % capacity
– Over-head RCC tank: 10,000 gallons at 50–60 ft staging
– Distribution HDPE PN-6 (SDR-26) mains 90 mm; household service lines with 25 mm HDPE and PP saddles
• Sewerage
– 646 No septic + soakage units (brick masonry & PVC vent)
– RCC Class-II/III pipe sewers 310 mm; manholes with standard PC/CI covers
– Influent Pumping Station: 2× submersible pumps 25 m³/h @10 m; wet well with RCC well curb + DI gate valves
– Anaerobic Baffled Reactor (ABR): multi-chamber RCC structure with internal baffles; includes inlet sluice gate, outlet penstock, monitoring points

Bills of Quantities Summary (Major Heads)

• Water Supply: $PKR\;77.847\,\text{M}$ (installations) + $147.96\,\text{M}$ distribution/sewer etc.
• Sewerage System: $PKR\;260.28\,\text{M}$
• Solid Waste Enclosures: $PKR\;8.15\,\text{M}$
• ESMP: $PKR\;3.525\,\text{M}$
• Employer/Engineer Facilities: $PKR\;2.25\,\text{M}$
• PRA 5 % stamp duty added where applicable

Key Personnel & Equipment (to be approved)

• Project Engineer: Asghar Ali Chaudhary; Site Engineer: Muhammad Usman
• Specialist roles (HSE, Social, Gender) to be nominated
• Essential equipment: Excavator, concrete mixers, total station, water bowser, vibrators, etc. (list in tender)

Geotechnical Investigation Requirements

• 1 borehole to 30 m + 2 boreholes to 15 m; SPT at 1 m intervals; Shelby tubes; permeability tests; lab programme (sieve, Atterberg, consolidation, UCS, chemical)
• Groundwater & soil chemical tests (sulphate, chloride) mandatory for durability design

Electrical & Mechanical Highlights

• Tube-well electrification: DBs, MCCB, DOL starters, LED lighting, earthing rods; cable sizes 10 mm² Cu
• Pumping station electrics: Main Panel Board with $50\,\text{A}$ MCCB, digital metering, PFI 10 kVAR, earthing $10\;\text{ft}$ copper rods

Employer’s Facilities

• Portable 20’×8’ site office container with AC + utilities
• Office boy, utility costs, and survey instruments (total station, level) – lump-sum $PKR\;2.25\,\text{M}$

Sub-Soil Water Control

• Provisional BoQ item $PKR\;1\,000,000$ for lowering water table via well-point/tube-well dewatering 3–5 ft below foundation

Common Mathematical Expressions

• Price Adjustment Factor (single-currency example):
Pe = Ac + Be \; \frac{I{mc}}{I{oc}} \tag{1} Where: – $Ac$ = non-adjustable coefficient (e.g. $0.20$ )
– $Be$ = adjustable portion for element $e$ (cement, steel, fuel, labour …) – $I{mc}$ , $I{oc}$ = current & base indices respectively • Liquidated Damages cap: $LD{max}=0.10\times CP$ (CP = Contract Price)

Ethics, Social & Gender Considerations

• Mandatory worker induction on SEA/GBV, HIV/AIDS, PPE use
• Grievance Redress Mechanism: worker & community registers; monthly reporting in Appendix B format
• Code of Conduct extends to subcontractors; violation grounds for personnel removal or contract termination

Practical Implications & Tips

• Submit shop drawings + bar-bending schedules early; PM approval required prior to casting
• Maintain rolling 3-week look-ahead aligned to approved programme
• Store hazardous materials on bunded, ventilated, concrete platform per ESMP
• Ensure separate MEP conduits before RCC pour of water tanks
• Keep record of all testing (concrete cubes, steel mill certificates, lab soils) – part of QA dossier for Taking-Over Certificate
• Monitor indices (Finance Dept. GoPunjab notifications) monthly for price adjustment claims
• Retention money can be replaced by on-demand bank guarantee post-Completion Certificate